The Zacks Analyst Blog Highlights Allogene Therapeutics, Arcutis Biotherapeutics and C4 Therapeutics
For Immediate Release
Chicago, IL – December 28, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Allogene Therapeutics ALLO, Arcutis Biotherapeutics ARQT and C4 Therapeutics CCCC.
Here are highlights from Wednesday’s Analyst Blog:
3 Under-$10 Drug Stocks Recommended by Wall Street
The year 2023 has been a mixed ride for the biotech sector, which played a pivotal role in getting the global economy on track following the COVID-19 pandemic by making successful vaccines and medicines.
Current Market Dynamics of the Medical Sector
The current year started on a high note as the world showed encouraging recovery signs from the COVID-19 pandemic thanks to the high vaccination and immunization rates. As a result, the demand for key drugs began to normalize. The focus shifted to developing new drugs and pipelines. Though companies engaged in making or developing COVID-19-related treatments continued to lose steam, the sector revived owing to the focus on obesity drugs, the demand and competition for whom is expected to increase in 2024.
One of the after-effects of the pandemic was the rise of several macroeconomic headwinds, such as rising interest rates and currency rate fluctuations. Though quite a number of companies took a hit because of these headwinds, investor sentiment in the sector continued to be driven by new drug approvals, pipeline development and an increase in M&A activity.
It is a good idea to invest in low-priced stocks with the potential for a healthy return as the sector is experiencing stabilization. One of the safest options to capitalize on money-making opportunities is to adhere to Wall Street recommendations and follow their experts' advice.
Our Choices
We have chosen three small biotechs priced below $10 with solid Zacks Rank and robust average broker ratings. We have taken the help of the Zacks Stock Screener to select the stocks. Below is a list of three such low-priced stocks in random order.
Allogene Therapeutics is developing allogenic CAR T therapies for treating cancer, especially hematologic indications with high unmet needs. The company has six pipeline candidates in the early stage of development, including five CAR T cell product candidates and a monoclonal antibody (mAB). Allogene's most advanced product candidates are ALLO-501 and ALLO-501A, which have been designed to target the CD19 protein that is expressed on the cell surface of B-cells. ALLO-501 is being evaluated in a phase I ALPHA study for r/r non-Hodgkin lymphoma (NHL) subtypes.
A second-generation version of ALLO-501, ALLO-501A, is also being developed for NHL in the phase I/II ALPHA2 study. ALLO-316, the company's first CAR T candidate for solid tumors, is being evaluated in the phase I TRAVERSE study in adults with advanced or metastatic renal cell carcinoma. The mAB candidate, ALLO-647, is part of the lymphodepletion regimen, which is likely to increase the potency of allogeneic CAR T cell therapies.
Allogene currently sports a Zacks Rank #2 (Buy). In the past 60 days, loss estimates for 2024 have narrowed from $2.21 per share to $1.98. Currently, Allogene has an average brokerage recommendation (ABR) of 1.47 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock. Based on these analyst projections, we expect an average price target of $13.63, suggesting a 345.42% upside to the current closing price of $3.08.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Arcutis Biotherapeutics is an early-stage commercial biotech company focused on developing meaningful innovations in immuno-dermatology. Currently, Arcutis has only one product in its portfolio, Zoryve, which received its first FDA approval as a cream formulation to treat plaque psoriasis. Since its launch, Zoryve has been experiencing robust demand growth. In the first nine months of 2023, the company has generated $15.7 million from Zoryve product sales, compared to $0.7 million in the year-ago period. A label expansion for the cream in atopic dermatitis indication is currently under the FDA's review, with a decision expected by July 2024.
Last week, the FDA approved a topical foam formulation of Zoryve to treat seborrheic dermatitis, a skin condition that usually affects the scalp. Following this approval, Zoryve foam became the first product to be approved to treat this condition with a new mechanism of action in more than two decades. Arcutis plans to launch this foam formulation in the country by the end of January 2024. Management also plans to seek label expansion for the foam formulation to treat scalp and body psoriasis.
The company currently has a Zacks Rank #2. In the past 60 days, estimates for Arcutis' 2024 loss per share have narrowed from $3.92 to $2.65. ARQT has an ABR of 2.00. Based on analyst estimates, we expect a 389.86% upside to the current closing price of $3.10, indicating an average price target of $14.50.
C4 Therapeutics, or C4T, is a clinical-stage biopharmaceutical company focused on developing a new generation of medicines that harness targeted protein degradation (TPD). To achieve this objective, C4T utilizes its proprietary TORPEDO platform to design, analyze and predict degrader performance. Earlier this month, it signed a collaboration deal with Merck to discover and develop degrader-antibody conjugates (DACs) with an initial focus on one oncology target.
C4 Therapeutics currently carries a Zacks Rank #2. In the past 60 days, Loss estimates for 2024 have improved from $2.77 per share to $2.55. The company has an ABR of 1.91. Based on these analyst projections, we expect an average price target of $16.82, indicating a 277.13% upside to the current closing price of $5.27.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report
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